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History of the Relationship Between Fasb & Iasb

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Running head: RELATIONSHIP OF IASB AND FASB

The Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board

Accounting Theory & Research 541

The History & Relationship of the International Accounting Standards Board and the Financial Accounting Standard Board

The International Accounting Standards Board (IASB), and independent standard-setting body of the IFRS Foundation was created after the Financial Accounting Standards Board (FASB) to develop and establish universal accounting procedures and standards for both boards. In recent years however, there has been significant shifts in the relationship between both entities given various considerations. Currently, IASB and FASB are working on a joint venture referred to as the convergence project, in hopes of eliminating a variety of differences between International Financial Reporting Standards and U.S. Generally Accepted Accounting Principles. It is further my intent to provide a brief history of the relationship between the two aforementioned entities as well as briefly address the importance of the prescribed course of study within the University of Phoenix’s Master of Accountancy program for individuals who are pursing professions within the field of accounting.

History
In 1973, FASB was born of the Financial Accounting Foundation (FAF) to generate and rectify practices of financial accounting and reporting for nongovernmental businesses. This change was made because of the censure of the Accounting Principles Board (APB) The APB fashioned two committees, the Wheat committee, charged with examining the way financial accounting principles would be created, and the Trueblood committee, to verify the objective of the financial statements. The American Institute of Certified Public Accountants (AICPA), which took the place of the APB, put...

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